The Company’s full year 2018 consolidated revenue grew by 11% to Rp15.9 trillion compared to the same period last year of Rp14.3 trillion. The largest contributor of the revenue was MPMulia, which generated approximately 88% of the total consolidated revenue driven by the strong sales growth of two-wheel market nationwide. In 2018, the debt decreased by Rp2.8 trillion, as a result of the early repayment of the borrowings from the divestment proceeds it received from the sale of the lubricant business. The results are the indication of the Company’s focus on improving key financial levers while maintaining business growth.

MPMX’s Group Chief Executive Officer Suwito Mawarwati said, “2018 was a strong and productive year for MPMX. We are pleased with the results we have achieved in terms of the financial and operational performance. The divestment of the lubricant business was a success and the proceeds have provided us with the possibility of deleveraging our balance sheet, rewarding our shareholder and growing the existing businesses and operations of MPMX. We have also taken the opportunities to streamline some of the unprofitable businesses as a way for us to improve the overall profitability of the group for the years to come.”

“I am very much looking forward to another great year in 2019. The hard work we have done in 2018 will start showing its impact in the new year through cost saving, profit margin increases or potentially new business acquisition. 2019 is full of possibilities. And I would like to thank our teams for their demonstrated ability last year and their commitment, as we strive together towards sustained long-term growth and value for all of our stakeholders,” added Suwito Mawarwati.

Subsidiaries Performance

MPMulia, the market leader for motorcycle distribution in East Java and NTT, sold 901,337 units in 2018, rose 7% from the same period last year. MPMulia sustained positive revenue growth by 12% and Net Profit 18% compared to the same period last year. As the largest revenue and profit contributor, MPMulia continues to create new strategies and initiatives which focus on digital transformation and business expansion by adding more warehouse and outlets. MPMulia is committed to continuously contributing to the development of the two-wheeled automotive industry and consistently improving the quality of its business and services, exclusively to customers of Honda products in the East Java and NTT regions.
Our financial services focused subsidiaries, namely MPMInsurance and MPMFinance, have achieved great result in 2018. MPMInsurance maintained a healthy performance with gross premium income grew by 25% in 2018 compared to the same period in 2017, with revenue recorded 19% increase compared to 2017. However Net Profit is slightly down due to higher net claim incurred due to the natural disaster in 2018.MPMFinance’s revenue and new bookings grew by 29% and 43% respectively from the same period last year. NPL ratio has been reduced at the 2.1% level by focusing on underwriting quality at all branches. MPMFinance also signed the agreement of bilateral facility of Rp2.3 trillion from local and foreign banks, as well as offshore syndication loan facility of US$333 million to support the company’s financing business line as well as maintaining a healthy portfolio growth.
To streamline the business units of MPMRent, the company took the decision to close down the Logistics services in late 2018, which impacted the overall profitability of MPMRent. The company will re-focus its business back to the car rental market where we continue to see great potential, and we believe the business is on the right path to produce profit in the near future.
***About PT Mitra Pinasthika Mustika Tbk

PT Mitra Pinasthika Mustika Tbk (“MPMX”) is a leading automotive consumer company in Indonesia, established in 1987 by William Soeryadjaya. MPMX is publicly listed on the Indonesian Stock Exchange and is majority owned by Saratoga Group.
MPMX’s vision is to have a positive impact on life through smart mobility and social integration. By collective power, we aim to deliver the most relevant products and services to the people in our ecosystems through innovation. Our businesses offer a broad spectrum of mobility solutions, from retailing and distributing motorcycles and cars, after-market parts and services, transportation services, and financial services.